China’s Zhaojin extends offer period for Tietto Minerals again

Zhaojin Mining has once again extended the offer period in its bid for Australia’s Tietto Minerals (ASX: TIE), a West Africa-focused gold producer.

Zhaojin is currently Tietto’s second-biggest shareholder with a 7% equity stake.

On Oct. 30, The Chinese gold miner, via its subsidiary Zhaojin Capital, lodged a bid of A58¢ a share for Tietto shares it does not already own. The offer represented a 36.5% premium at the time.

However, Tietto, which just began production at the Abujar gold mine in Côte d’Ivoire last January, recommended its shareholders to reject the bid, stating that it “materially undervalued” the company and its project.

Tietto also said the offer had been “opportunistically timed” by Zhaojin as it came after an improvement in its flagship mine.

In a November exchange filing, Tietto said that independent expert Grant Thornton assessed the fair value of its shares to be in the range of A79¢-A93¢, valuing the company at up to A$1.1 billion. Zhaojin’s offer was valued at roughly A$629 million.

Tietto shares most recently traded at A62¢ apiece.

Zhaojin said it believes its bid offers fair value and that it has already received approval from Australia’s Foreign Investment Review Board for the deal. As such, the company has repeatedly extended the offer period for shareholders to accept the deal.

With the latest extension, the offer is now valid until 7 p.m. Sydney time on Friday, Mar. 8, unless extended or withdrawn, Zhaojin stated on Thursday.